CHICAGO, Aug. 23, 2021 /PRNewswire/ -- According to the new market research report "Automotive Thermal Systems Marketby Application (Front & rear A/C, Engine & Transmission, Seat, Steering, Battery, Motor, Power Electronics, Waste Heat Recovery), Technology, Components, Vehicle Type and Region - Global Forecast to 2026", published by MarketsandMarkets™, the global Automotive Thermal Systems Market is projected to grow at a CAGR of 3.7% during the forecast period, from an estimated USD 40.9 billion in 2021 to USD 49.1 billion by 2026. Stringent emission norms and rising demand for in-vehicle comfort applications will drive the automotive thermal system market.
Passenger Car segment is expected to be the fastest-growing segment during the forecast period
The passenger car segment is estimated to be the largest market for automotive thermal systems. The top 6 countries with the highest passenger car production are China, Japan, Germany, India, South Korea, and the US. The key factors that drive the sales of passenger cars in various countries are increasing per capita income and improved standard of living. Also, the growing inclination toward comfort and luxury and demand for advanced features such as heated/ventilated seats, heated steering, and rear air conditioning are expected to drive the market. Consumers in Europe and North America prefer premium and luxury vehicles, and the demand for these vehicles in key Asian countries such as India and China has witnessed an upward trend in recent years. This has boosted the global demand for advanced thermal systems in these vehicles.
The waste heat recovery segment by application is expected to be the fastest-growing market
The thermal system market for waste heat recovery is estimated to grow at the highest CAGR of 10.2% during the forecast period. The growth of the waste heat recovery system market can be attributed to the increasing production of commercial vehicles that have turbochargers and EGR as standard fitments. Due to stringent emission norms, waste heat recovery technologies have also been adopted in gasoline vehicle.
Asia Pacific is estimated to be the dominant regional market
Asia Pacific is estimated to be the largest market for automotive thermal systems and is expected to grow at a CAGR of 4.0% during the forecast period. The Asia Pacific region has emerged as a hub for automotive production in recent years. Changing consumer preferences, increasing per capita income of the middle-class population, and cost advantages have led OEMs to increase vehicle production in the region. Thus, China, India, and Japan have seen a significant increase in vehicle production. The huge vehicle production in the region offers a tremendous growth opportunity for the automotive thermal system market. Favorable investment policies and availability of cheap labor have also made Asia Pacific an ideal market for automotive OEMs. Increased demand for luxury cars with superior cabin comfort has spurred the demand for automotive thermal systems in this region.
Key Market Players:
The global Automotive Thermal Systems Market is dominated by major players Denso Corporation (Japan), MAHLE GmbH (Germany), Hanon Systems (South Korea), Valeo (France), and BorgWarner Inc. (US). These companies adopted new product development, and expansion strategies to gain traction in the ride-sharing market.
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